Marpai Health, Inc. announced its acquisition of Maestro Health, a Chicago-based health & benefits company on August 4. This marks Marpai’s second acquisition since the start of 2021 and the first of 2022. The purchase price was $22.1 million.
Founded in 2013, Maestro Health offers a platform that serves employers, employees, brokers and carriers. It serves more than 25,000 people and has more than 80 customers in more than 40 states with a 93% client retention rate. The company previously received growth capital financing from lead investor Oak HC/FT and SV Health Investors.
Marpai Health uses artificial intelligence, and its platform Marpai Labs, to help reduce healthcare costs for self-insured companies and their employees. Marpai competes in the $22 billion Third Party Administrator sector serving self-funded employer health plans representing over $1 trillion in annual claims.
The combined company will serve more than 40,000 employees with expected combined annual revenue of approximately $40 million in 2022.
The purchase will be financed over four years, reflecting a 10% per annum cost of capital in amounts of $5 million, $6 million, $8 million and $9 million, which will be payable on December, 31 in 2024, 2025, 2026 and 2027, respectively.
According to the LevinPro HC database, this acquisition is the second Managed Care transaction in August, the 10th in the second quarter and the 27th of 2022. Through the first week of August 2021, there were 31 Managed Care deals, 14% higher than the same time frame of this year.
